2014-08-16 papers

on Microfinance

Issue of 2014–08–16
one paper chosen by
Guadalupe Acra Ticona and Olivier Dagnelie, Université de Namur

Can Microfinance Reach the Poorest: Evidence from a Community-Managed Microfinance Intervention By Jonas Helth Lønborg; Ole Dahl Rasmussen

Can Microfinance Reach the Poorest: Evidence from a Community-Managed Microfinance Intervention

By:	Jonas Helth Lønborg (University of Southern Denmark); Ole Dahl Rasmussen (University of Southern Denmark & DanChurchAid)
Abstract:	Reaching the poorest is an important objective in many development interventions, and microfinance is no exception. We review performance indicators for effectiveness of targeting described in the literature and suggest a new metric in order to account for extent and severity of poverty as well as the income distribution among the poor. When applying this to a panel dataset from a community-managed microfinance intervention in Northern Malawi, we find regressive outreach: Participants are less poor than the general population in the area. In addition, we provide suggestions as to when and why the poor exit the project.
Keywords:	targeting, outreach, microfinance, Africa, Malawi, savings groups
JEL:	O16 O13
Date:	2013–08
URL:	https://d.repec.org/n?u=RePEc:rok:spaper:55

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